Manual Underwrite Qualifier Multi-Step Form Do you have the downpayment of 3.5% for FHA plus Closing Cost or do you have the Closing Cost Cash to Close for VA and USDA? Seller Concession can help eliminate Closing Cost Cash to Close Yes No ↻ Credit Score above 580? Yes No Do They have 10% down payment? Yes No ↻ Does the borrower have any Non-Medical Collections? Yes No Are they over $1000 in Collections? Yes No Make Sure To Add 5% To The Balance To Establish A Payment Continue ↻ Does the Borrower have any derogatory accounts? Yes No Extenuating Circumstance? Yes No Get Letter documenting what happened and be sure it's not been in the last 12 months Continue ↻ Does the borrower have any 30-day installment lates in the last 12 months that cannot be documented with extenuating circumstances? Yes No ↻ Does the borrower have any 60-day installment lates in the last 24 months that cannot be documented with extenuating circumstances? Yes No ↻ Does the borrower have any 60-day revolving lates that cannot be documented with extenuating circumstances? Yes No ↻ Ratios: Front Max Front to be Eligible: 40% Back Max Back to be Eligible: 50% Check Ratios No Compensation Factor!!! Continue Do They have 3 Month Cash Reserves? Yes No ↻ VOR with no lates in the last 12 Months? Yes No Can you get a Rent Free Letter for the Borrower Yes No ↻ If Renting: The mention is the Mortgage payment 25% of Current Rent?Example: Current: $1000 New Payment: $1226 would not be eligible. Yes No ↻ Does the credit report have any non-medical disputes that total over $2000? Yes No Is the findings Approved Eligible or Refer Eligible Approved Eligible Refer Eligible ↻ Not Eligible ↻ Explain: “Add 5% to the balance for a payment” Then allow to continue ↻ Get Documentation ↻ Get Letter documenting what happened and be sure it's not been in the last 12 months ↻ No Eligible Reach to Manager for any Exceptions ↻ Not Eligible/Work to get a Rent Free Letter ↻ Not Eligible and you will need to remove the Disputes and pull a new credit report or get an Approved Eligible in Findings so it can be Downgraded to Manual Underwriting. ↻ Your Loan is Eligible for Manual Underwrite Guidelines.
